2008 (7) TMI 952

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..... the Assessment Year 1993-94. The appeal was admitted by this Court on 17th July, 2006 and the following substantial question of law was proposed and the appeal was admitted qua the said question of law : "Whether on the facts and circumstances and in law the ITAT was right in directing the AO to exclude the sums relatable to Sales Tax and Excise Duty as they do not form part of the total turnov .....

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..... lso cannot form part of "turnover". Just as interest, commission, etc., do not emanate from the "turnover" so also excise duty and sales tax do not emanate from such turnover. Since excise duty and sales tax did not involve any such turnover such taxes are however to be excluded. Commission, interest, rent, etc. do yield profits, but they do not partake of the character of turnover and therefore t .....

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..... ary in order to make the formula workable. If so, excise duty and sales tax also cannot form part of the "total turnover" under section 80HHC(3): otherwise the formula becomes workable. 4. Since the issue raised in the present tax appeal is squarely covered [by the above decision of the Honourable Supreme Court, we answer this question in favour of the assessee and against the revenue. The appea .....

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